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Airbus CEO hopes for significant boost from A400M talks
April 12, 2017 / 1:05 PM / in 7 months

Airbus CEO hopes for significant boost from A400M talks

AMSTERDAM (Reuters) - Airbus hopes to get “significant” financial help from European governments to ease renewed problems with its A400M military transport aircraft, Chief Executive Tom Enders said on Wednesday.

FILE PHOTO: Airbus Group Chief Executive Tom Enders speaks during a news conference on the aerospace group's annual results, in London, Britain February 24, 2016. REUTERS/Hannah McKay

In February, Airbus called for further help on Europe’s largest defence project, following penalties for delays and a contract clause allowing buyers to withhold some cash payments.

In late March, Airbus held talks with European purchasing governments who decided to maintain the penalties, but did not rule out some short-term flexibility..

“We are very grateful that governments have responded to our plea to engage in these discussions, which will hopefully bring significant financial mitigation,” Enders told an annual shareholder meeting.

Enders said the drain on cash from the A400M problems should be reduced beyond 2018, after which the company would demonstrate strong potential for cashflow generation.

Reporting by Tim Hepher; Editing by Sudip Kar-Gupta

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